flypop announces investment from UK government Future Fund
With the investment, flypop will continue discussions with aircraft manufacturers to secure deals and offer low fares
flypop, a UK-based long-haul, low-cost airline, has announced today that it has received an investment from the UK government’s Future Fund. According the scheme overview available online, the Future Fund issues convertible loans to UK companies that have “good potential, that typically rely on equity investment and are currently affected by COVID-19.”
Announced by Chancellor Rishi Sunak on April 20, the funding scheme aims to help companies through the economic disruption and recovery so that they can continue growing and achieving economic potential. It provides loans ranging from £125,000 (US$145,000) to £5 million (US$5.8 million). The Future Fund is designed by the government and delivered by the British Business Bank.
With the investment, flypop plans to launch in 2021 scheduled flights to India. According to the November 2 flypop press release, “It will cater not only to the UK’s Indian and South Asian diaspora but also those keen to visit the region with very low-priced flights.”
“The funding from the UK government’s Future Fund will play a key role in putting flypop in a position to start flights, initially between the UK and India, something which will contribute significantly to the economic growth and closer cultural links between these two Commonwealth partners and eventually with all of South Asia,” said Nino Singh Judge, Founder and Chief Executive Officer of flypop.
Now completing its final funding round, the airline will begin negotiating low cost airport deals in both the UK and India, and it will continue discussions with aircraft manufacturers to secure deals and offer low fares.
The press release continues: “The UK economy is expected to benefit significantly from closer travel links with India when flypop starts flying. flypop will offer employment opportunities to flight and cabin crew (amongst others) at a time when the airline industry has been suffering the biggest challenge in its history and thousands have lost their jobs.
flypop would like to thank HM Treasury and the British Business Bank for their support during these critical times.
flypop would also like to acknowledge the invaluable assistance it received from its legal adviser, leading next-generation City law firm, McCarthy Denning, who have been instrumental in making flypop’s UK government Future Fund application a success."
According to the online statement from the British Business Bank, the Future Fund will stop receiving applications on November 30.
